Editor’s note: Dave Buck is a longtime columnist with Rethinking65. Read more of his articles here.
I’ve embraced artificial intelligence. It is creating more and more opportunities for me to complete projects and tasks faster. However, with the excitement of the process, it is easy to be lulled into seeing an AI platform as a solver of all your problems. That is why it is so important that financial advisors become proactive with their clients and explain the benefits and limitations of artificial intelligence.
Even in what can be considered the early adoption phase of this new technology, 25% of Americans say they would trust AI more than their current financial advisor. On the flip side, one year ago, almost two-thirds of advisory firms had no plans to develop or use client-facing AI processes.
Face it. Some of your competitors are not other humans, they are algorithms or robo-advisors. They promise efficiency, simplicity and attractive fees. In many ways, they’ve delivered. But in this rush toward automation, many advisors are asking the same question: Where does that leave me?
Let’s state reality: Automation can be beneficial for your clients in many areas. It can show how to efficiently allocate assets, rebalance portfolios and manage tax-loss harvesting — all at a fraction of traditional advisory fees. For investors who want nothing more than a set-it-and-forget-it experience, this is appealing. It’s no surprise that these platforms are growing in popularity, especially among younger or tech-savvy investors.
But financial life isn’t just about investment returns. It’s about the why behind those returns. And that’s where things get fuzzy — for the machines.
“The AI genie is not going back in the bottle. The machine is here to stay. Look at it as a tool to keep you relevant.”
The AI genie is not going back in the bottle. The machine is here to stay. Look at it as a tool to keep you relevant.
Provide the Emotional Intelligence
Let me be clear; I am no AI expert. Artificial intelligence can analyze data, a lot of it. I receive concise and focused summaries. Yet, when I have attempted to build models that try to anticipate behavior (particularly tied to post-career lifestyle choices), AI can get confused and imprecise. Emotion is hard to comprehend.
AI doesn’t sense anxiety after a market drop or recognize the subtle grief a client may feel after stepping away from a lifelong career. AI doesn’t pause when someone mentions they feel “lost” in retirement or notice when a widow’s voice cracks while talking about the house she no longer can afford to maintain.
That’s emotional intelligence — and it’s uniquely human.
As a retirement coach, I’ve witnessed firsthand how clients don’t just need a portfolio update. They need a framework for the rest of their life. Lifestyle planning brings this into focus. It’s not about chasing returns; it’s about redefining relevance, structure and fulfillment in a post-career phase.
Embrace a Third Party
I recently participated in an AI leadership review. One of the participants talked about how he uses AI to argue with himself. It is a way to test arguments before confronting another person on an issue or challenge. Consider that your clients might be testing you with the same method — rehearsing their arguments with AI before confronting you.
Therefore, embrace the reality that AI is going to be a third-party in the process. Whether you choose to proactively invite machine learning along, your customers will adopt AI at some point and at some level. Change your approach from the analytical partner to the thinking partner.
A thinking partner doesn’t just ask, “What’s your risk tolerance?” They ask, “How do you want to spend your days in retirement?” “What relationships need more attention?” “What’s something you’ve always wanted to do but never had time for?”
Those are the questions AI can’t ask. And even if it could, it wouldn’t know how to hold space for the answers. In a world where algorithms manage money better and cheaper, financial advisors must evolve. The future isn’t about competing with robo platforms — it’s about offering what they can’t
From ROI to ROE
Advisors need to be poised in the numbers. I have not met a single experienced wealth manager who lacked confidence in their ability to create a solid financial strategy for an existing client or prospect.
Yet not all of them know if their clients are emotionally ready to retire or if they comprehend the dynamics of life without work. AI can summarize data, but you can bring clarity to their return on experience.
Advisors are in a unique position to provide that. But it requires new tools — not just financial calculators, but also time-use analysis, purpose exploration and lifestyle mapping.
A client who recently completed a time analysis with me realized he had unconsciously built a work routine that isolated him from others. Financially secure but socially disconnected, he didn’t need better asset allocation — he needed a better week.
That kind of insight can’t come from a dashboard. It comes from a conversation. Financial advisors can start the dialog. AI can’t.
David Buck is the author of the book “The Time-Optimized Life,” co-author of the book, “The Retirement Collective,” owner of Kairos Management Solutions LLC, and founder of the Infinity Lifestyle Design program. As a certified professional retirement coach (CPRC), David works with financial services providers helping their clients create a post-career lifestyle strategy. To learn more, contact him at dave@kmstime.com or visit Infinity Lifestyle Design
I’ve embraced artificial intelligence. It is creating more and more opportunities for me to complete projects and tasks faster. However, with the excitement of the process, it is easy to be lulled into seeing an AI platform as a solver of all your problems. That is why it is so important that financial advisors become proactive with their clients and explain the benefits and limitations of artificial intelligence.
